China SAT says approval no longer required for some cross-border tax administration issues, outlines new procedures

China’s State Administration of Taxation in a June 23 English-language release described follow up procedures that implement the SAT’s decision no longer require tax administration approval in some situations involving cross-border taxation. The release translates guidance issued on April 27.

The follow up procedures apply in lieu of prior rules which required competent tax authority’s review of the applicable industry and the applicable profit margin of a non-resident enterprise, the approval for the selection of a competent tax authority by a resident enterprise registered overseas and controlled by Chinese capital and the approval for the change of competent tax authority, as well as the verification of special tax treatment selected in the equity transfer by a non-resident enterprise.

See:

• SAT Strengthens Follow-up Management of Four Cancelled Tax Administrative Approval Items